NVDA stock prediction as Amazon undercuts Nvidia AI chip prices

Core Viewpoint - Nvidia's dominance in the AI chip market is under threat from emerging competition, particularly from cloud giants like Amazon, Alphabet, and Microsoft, which could impact its market share and stock price [1][2][3]. Group 1: Current Market Position - Nvidia is currently trading at $115, down nearly 3% from the previous session and 16% year-to-date, indicating a challenging market environment [1]. - The company is facing losses and is trading below the $120 resistance level, raising concerns about its long-term valuation [1][4]. Group 2: Competitive Landscape - Amazon Web Services is offering Trainium-powered servers at 25% of the cost of Nvidia's H100 GPUs, which could lure AI customers away from Nvidia [2]. - The aggressive pricing strategies of competitors may erode Nvidia's market share and pricing power, as enterprises seek more cost-effective alternatives [3]. Group 3: Future Stock Predictions - If Nvidia fails to maintain its market position, stock prices could drop to between $100 and $110 in the short term [6]. - In a bearish scenario, if competitors continue to gain ground, Nvidia's stock could fall to $80 or lower, while an optimistic outlook could see it recover to $150 or over $200 in the long run [8]. Group 4: Strategic Initiatives - Nvidia needs to reassure investors of its leadership in the AI space, particularly with the upcoming launch of next-generation Blackwell chips [11]. - The annual GPU Technology Conference (GTC) will be crucial for Nvidia to showcase its AI leadership, with CEO Jensen Huang expected to deliver a keynote address [11]. Group 5: Market Sentiment - Some market analysts, like Dan Ives from Wedbush Securities, believe Nvidia remains central to the global AI boom, citing high demand for its Blackwell chips [12]. - Ives also highlighted Nvidia's focus on innovative areas such as the Rubin platform, quantum computing, and autonomous robotics during the GTC event [13].